Business

Palm Oil Prices Soaring! Discover the Rainy Season Impact and Surprising Market Predictions for Next Week!

KUALA LUMPUR: Anticipation of reduced output is expected to drive an upward bias in the crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives next week. Palm Oil Analytics (Fastmarkets) Managing Director Dr. Sathia Varqa stated that market participants are closely watching for the Malaysian Palm Oil Board’s November data, scheduled for release next Tuesday, to assess market direction.

READ: Unbelievable Earnings Surprise! United Natural Foods (NYSE: UNFI) Defies Analyst Predictions with Shocking $0.26 Beat

“The expectation is for a decrease in production to maintain unchanged stocks. Attention will also be on the export data for Dec 1 to 10,” he said.

Palm Oil

Palm oil trader David Ng predicts a positive market trend, attributing it to the anticipated decline in output during the rainy season. He noted that the Friday rally in the soybean oil market is expected to continue, providing additional support for palm oil prices. The movement of palm oil prices is influenced by competing oils in the global vegetable oils market.

“However, the upside next week may be constrained by a weak export trend towards the year-end. Consequently, we anticipate support at RM3,650 per tonne and resistance at RM3,800 per tonne,” he informed Bernama.

In the recently concluded week, the local CPO market experienced mixed trading, mirroring movements in the regional commodity market, soybean oil prices on the Chicago Board of Trade, and fluctuations in crude oil prices.

For the week ending, December 2023 saw a decrease of RM133 to RM3,600 per tonne, January 2024 declined RM136 to RM3,689 per tonne, and February 2024 erased RM134 to RM3,740 per tonne.

March 2024 slipped RM128 to RM3,769 per tonne, while both April 2024 and May 2024 fell RM125 each to RM3,770 per tonne and RM3,753 per tonne, respectively.

The total weekly volume increased to 308,072 lots from 238,255 lots in the previous week, with open interest expanding to 214,153 contracts from 208,661 contracts.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button